Uber, Lyft Willing to Cover Costs of Insuring Drivers in Winnipeg

"In 16 of the 18 markets available, the median earnings per hour of Uber's driver-partners exceeded the average hourly wage of taxi drivers and chauffeurs".

Researchers surveyed more than 1,100 Uber and Lyft drivers, asking them what vehicle they drive, how many miles they drove and their self-reported revenue. That results in a median profit of $3.37 for each hour on the road. Four years later, a new study found that the median incomes of Uber and Lyft drivers may be significantly lower than that figure. As Harry Campbell, founder of the Rideshare Guy website, told the Guardian, "The most common feedback we hear from drivers is they end up earning a lot less than they expected".

More than 80 percent of the drivers surveyed said they work less than 40 hours per week. Because drivers for services like Uber and Lyft aren't technically company employees, they get paid as contractors and must cover their own costs, like gas, vehicle maintenance, and most of all, their self-employment taxes.

Notably, a choice few drivers with the most efficient vehicles and running the most profitable routes were able to turn out revenue of $1.50 per mile. "The companies are losing money. and the drivers are essentially subsidizing it by working for very low wages".

Past studies have shown higher profits for Uber drivers. For example, isn't 74 percent of cases, ride-sharing drivers were found o be earning less than their state's minimum wage.

For tax purposes, the government allows drivers to take a standard deduction of $0.54 per mile. The mean monthly pretax profit for drivers is $661, while the median profit for a month is just $310.

Stephen Zoepf, a co-author of the paper, told The Guardian "it's quite possible that drivers don't realize quite how much they are spending".

Lyft spokesperson Alexandra LaManna also released a statement on the MIT paper saying: "We will continue to engage with our driver community to help them succeed".

'These drivers are our most important partners, but we haven't done a very good job honoring that partnership, ' said Rachel Holt, regional general manager for Uber in the USA and Canada. However, in separate interviews, Lyft spokesperson Chelsea Harrison and Uber spokesperson Chris Schafer explained that both companies are willing to pay for the insurance if it eliminates the requirement for drivers that says they must indicate in advance when they intend to drive.

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